Benefits to Professional Advisors

by Betsy Mangone

As an advisor to charitably minded individuals and families you are strategically positioned to assist in the philanthropic decision process. Getting involved in your clients’ charitable planning can help you broaden your network, strengthen your relationships and develop a key area of expertise – all while facilitating good works. More and more advisors are recognizing the need for facilitating philanthropy. Here are just some of the compelling reasons to make this an important part of your investment advisory, accounting or law practice:

Philanthropic clients make better clients. The generous spirit that motivates people to give to charity often extends to the way they relate to other people in their lives (including advisors). People who give regularly tend to be more understanding and more willing to pay fairly for valued services.

Philanthropic clients have more assets. While this seems obvious, often advisors miss the connection between significant giving and significant net worth. These clients require excellent professional services and your attention to philanthropy will help attract and retain them.

Philanthropic expertise will distinguish you from the crowd. Increasingly professional services are becoming commoditized. When clients can get investment, legal and tax "advice" free from the internet, advisors must differentiate their services to overcome the competition.

Philanthropy is growing rapidly. With greater wealth and an aging population, charitable giving is burgeoning. In 2004 giving to US non-profits of all types was nearly $250 billion. Estimates of the baby boomer wealth transfer expect that more than $20 trillion will go to charities in the coming decades. (Source - National Philanthropic Trust)